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Case 1:99-cv-00550-ECH

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FEDERAL REGISTER
VOLUME 32
Thursday, June 15, 1967

¯
¯

NUMBER 115
Washington, D.C.

Pages 8571-8652

HeinOnline -- 32 Fed. Reg~ 8571 1967

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RULES AND REGULATIONS amended by deleting from paragraph (e) the item "Ferrous glucenate:' (See. ~OS (b) (1), (c) (2), (d), 74 Sta~. 399, ~o2; 21 ws.o. 3~ (b) (z), (c) (2), (d)) Dated: June 8, 1967. J. It_ Km~ Azsocffz~eCorn~zLs~,r 1or Compline&

mired in a petlflon CPAP 3D0956) ll]ed Intero~ted pe~r~o~ ~exe alve~ 80 d~s ~erck Sharp & Dohme Rescareh T~b ora- f~-or- the date of publication of the not~c~ tories, Division of :Merek & Co~ Inc., in the ~'~m~J~t, I~Gzszz~ within ~tdch Rahway, lq'J. 07065, and other relevant to ~tbmif; their views, data, and z.-'mzment~ cowc~ the P~O9O~--~I z~vL~en nmteda], tins concluded thnt the food ~md zevocatio~ to the Co~o~x o£ additive regulations should be nmended 3[n~ AffaL~ Wzi~te~ ob~ecflm~s were to provide for the safe use of thlnhP.nda- received re~dm~ the pro~s prozole in swine feed ~s indicated below. l~lbRlng ~ shutdorm, abandonment~ or continuance of opo.xa~Ions xTit~h[F--~. Doc. 67-6731; l~lled. JUne 14, 1967; Therefore, p~t to the provis4ons o£ other dI:-approv-~l of the Su~rinten~nf= out the 8:48 ~J=-I the Federal Food, Dn~, and Connet~c "l~he objections sxe baaed on the concluSUBCHAPTER B---FOOD AND FOOD PRODUCTS Act Csec. 409(c)(1), q2 Sf~f- 1~8G; 21 sion thab the~ poin~ m cov~d b~" U.S.C. 348(o) (1)) and under the nuthor- e:d~ttug reLnd~flons. ~¢one of th_~ re~--ul~PART 121wFOOD ADDITIVES Subpart C---Food Additives Permitted l~y delegated to the Commi~oner by the ttons cited, ho.'vevex, deal fully ~ud dcRnRely with the subject. in Feed and Drinking Water of Ani- Secretary of Health, Education, and Welfare (21 C'FR 2.120), § 121.260(c) Ls To facilitate the adminL'-~atlon ~nd mals or for the Treatment of Foodthe maz~ amended by adding to table 2 a new Item su#e.w~, oa over recevP.r~~,e.lI clm~es Producing AJnimals on ~.~con ~d~y projeef~ ~u 5, as fO1]OW~: amendm -enf~ has b.~=_.n added to the Subpart D~Food Additives Permilied p~ra~ph o£ § I~3~1 a.s pro~o~d by in Food for Human Consumption § 121.260 "fldabendnzolc. Whlch the Superinto-udenb m,,'~ autharize tha~ the~- ~ell ctm~ be included in a month~ zeporf~. 1. The CozzuzzL~oner of Food and Drugs, ~ evil.ted the data subCo) " " * ObJecf;tons were ~/~-O l'aL~ed on th~ propozed ~qut~ment for the p~-.~n~nt of a $15 fee by l~ upon aPpHcatlon of authod~'y to plu.~ ~ wPJL However, I~ T~nlt~J~r~ JL~ount Combined Amount is believed those obJec~ns do not have ~,~dJmt sumclent, b:~f~ to wan-ant any ch~u~e. eee ,,it, ee(, *o# Acco~]y, the proposed amendments For ~: Adml~tcr con- ~,I in tbo r.rcv',._~ff.nn to 25 ~ P~ 183 are hereby adopted, ton (0.00,% subJec~ to the fo]le~.z~ eb&ug~: 0/g~. 0.05-0.1 ,% tblat~l~o,~ p~,r ton f~r 2 ~ f.~lIn § 183.81, ~ proposal, the wo:d lowL-d by ~t ~ntnln~ 0.00,~-0.~.~ thht~udzz.~b "f:~er~om" is deleted L-,om the second ~=ton fo~ 8-14 v;'~..~; do sP.~tence of the ~ p3z~ph; ~J~d a n~t t~cat onlm~ vdth~ provi~on is added at, the end of the firs ~,.3 d~ys of ~.~aghtc~. p~r~grnph under which ~ ~uLoe¢tntenden~ ~o.~ authorize that, ~eI[ ch~n~e~ on ~cond~ry recovez~ proJec~ be inE~ecHt'c daf~.~hir, order rJ~dlbecome cluded in s monfldy report. 2. Based uDon a~ evaluation of the d~ta before him and proceeding under e~ective on the date of it~ publication in 'l"~e~e amendment~ ~ become e~the authority of the act (see. 409(c) C~, the Fz.~ P,z.~xs'nm. fecflve 30 day~ foHo~ the d~te of ~2 SEaf~ 1786; 21 U~S.C. 348(c) (4)), dele- (S~c. 409(c) (1), (4). "/'2 Star. 1786; 21 US.O. Publication in the ~m~u ~ gated as cited above, the Commissioner s48C¢) (z), (4)) has concluded f~t a zero tolerance is Szzwm= ~. Uv_~T~, Dated: June 6,1967. required to assure that edible ~s~ues of ~¢crctary o] t~¢ Inerror. swine t~eated w/th- thiabendazole in A&~ocfa~ CommL~oncr Jozm 8, IS6"L accordance v~th § 121.260 are ~afe for ]or Oompffancc, human consumption. Accordlug]y, §121.I. Section 183.81 is rev~d to read P~ 1153 is reHsed to read as follows: [I~.~. Doc. 67--G574; ~'Aed. Juno I"L 10b-'/; follows: 8:45 am.l § 121.I15~ Thi~endazole. § 183.81 Shnl~Io~a, aban~Ionmen~ nmI A tolerance of zero is established for plugging of wells. residues of thfabendazole in the edible ~TO producLtve well shall be ab&udoned t~ssues of cattle, goats, sheep, and swine until its 12ok of c~p~(dt~ for fur~er and in milk ~om cattle and goats, Any ~emon.~ho ~ be adversely Chapter l--Bureau oF Indian Affairs, profl~3ble production of oil or g~s h~s been demo~ted to the ~fac'don of affected by the ~oregolng order may at Department of the Interior the Supexintendenf~. I.e~ee therefore any %ime-~dthtn 30 days ~rom the date o¢ SUBCHAPTER Q---~IL AND GAS dmn no~ shut dou-n, absndon, or o~erIts publication in the ~'~'~ Rzc~ ~ ~le with the Hearing Clerk, Depar~en~ PART 183---LEASING OF OSAGE RES- dkcon~nue Lhe op~ra~ion o~ u~e of any w.P_.ll withouf; the vad~-_~ approwal of HeaI~h, Education, and Weffare, l~oom ERVATION LANDS FOR OIL AND of the Superintendent or his da.~l~ated 5~0, 330 Independence Avenue SW., GAS t,~INING x~pre~entatlve. All appllca~ons for such Washington, D.C. 20201, written ob;iecapprovR1 shall be ~ubmi~ted to tize Su~ertions thereto, preferab~ in quintuplicate. Miscellaneous Amondments intendenb on forms furni~hed by him. Objections shall show ~hereln the ~erOn page 12'194 of the ~'~x, ~m_s- Y.~3ee~ opernttn~ ~acondary recovery son filing wiII be adver~ely affected by the units may obtain permL~,.~ion from the order and specify wtth particula~ity the ~ of September 30,19660 there ~ pubprovisions of the order deemed objec- Ltshed a notice of lntenffon to revise SUpeztntenden~ to submt~ a monthly well tionable and the grounds for the objec- § 183,81 and to revoke §§ Ig3.~2, 183.83, status repor~ rather than obtain inditions. If a he~.ug is requested, the ob- and 183.84 of Title 25, Code of FedPJ~nl viduaI authorizations for ~ the status of producing, injection, dL~. o=--~, l~egulaflons. jec{~oz~s mus~ state the issues for the ~[~e pm-Po~e of the revision and revo- or other wP_.lls connected ~T/f,h the opar~. A hearing wiI1 be granted tf the ation of the unit. is fully objections are supported by ~ounds cationfor to provlde more under and de~- (a) AppIIcation for autho~i~ to shut nRe]y the condition~ ~hlch oll legally ~l~clen~ to justly the relief and gas ~ell,s may be shutdovm, aban- down or dl~ccntinue use or operation of sought. Objections may be accompanied doned, and plumed and for p~yment, a well shnll ~ef; forth ~usttfic~tion thereby a memorandum or brief in support of a fee of $15 when applying for permLs- for ~ud probable duration, the mea~ by thereof. ~ton to plug a ~elI. which the wetl bore is to be protected,

Title 25--lttDIAltS

~o. 115-----3

FEDERAl. P~GISTER, VOL 32, NO. llS---THU~L~OAY, JUHE 15, 1967

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8588

RULES AND REGULATIONS

and the contemplated eventual dispositypes of engineering data. tion of the well. The method of conditioning such well shall be subject to the Chapter l---Offlce of the Secretary of (a) Formally approved engtnerrlnff approval of the Inspector. data. All engineering documentation (b) Wells to be permanently abanDefense subjected to formal development and redoned shall be promptly plugged as view by one or more DoD component8 SUBCHAPTER M--.MISCELLANEOU$ prescribed by the Inspdctor. Applica(see DoD Directive 4120.3, "Defense tions to plug shall set forth reasons for PART 267~ENGINEERING DATA Standardization Program," datedApro 23, plugging; a detailed statement of the FILES 1965, and DoD Instruction 4120.8. "Use proposed work including kind, location, of Standardization Documents I~ued by The Director of Defense Research and Industry Groups," dated Aug. 9, 1960 and length of plugs (by depth), plans Engineering and the Assistant Secretary for mudding and cementing, testing, (25 F.R. 8606) ). Typical examples are: parting and removing casing; and any of Defense (Installations and Logistics) (I) Standards: (1) Federal and Millapproved the following on April 13, 1967: other pertinent information: Pronged, tary standards. The Superintendent. or his designated 01) DoD-approved industry standnrd~. representative, may give oral pernflssion 267.1 P~e and objectives. (2) Specifications: (tl Federal and and instructions pending receipt of a 26/.2 Appllcablllty and scope. Military specifications. written application to plug a newly SBT~ l)eflnlt~o~. 267.~ Concept. (fl) DoD-approved industry specifics. drilled hole. Lessee shah remit a fee of 267.5 Respon~btlities. tions. $15 with each written application for 267.6 Effective date and hnplement~tion. (3) MIMtary handbooks. authority to plug a well, such fee to be AwrHo~: 'Z~e prov~loms of this Part refunded if permission is not granted. (4) Qualified produets lists. 267 ISSUed Under 5 U.S.C. 301. (c) Lessee shall plug and fin all dry or (b) Additional engtneertn~ data. Other § 267.1 Purpose and objectives. abandoned wells in a manner to confine engineering documentation not now ~ubthe fluid in each formation bearing fresh This part supplements DoD Directive Ject to formal standardization developwater, oH, gas, and other n£inerals, and 4120.3, "Defense Standardization Pro- ment and review processes may be to protect It against invasion of fluids gram," dated April 23, 1955, by assign- included upon establishment of the necfrom other sources. Mud-laden fluid, ing responsibilities to Department of essary procedures and controls (seo cement, and other plugs shall be used to Defense components for developing and §267.5(a)). Examples of such docufill the hole from bottom to top: Pro- applying un~orm management and dts- mentation are: v~led, If a satisfactory agreemen~ Is trlbution techniques to DoD engineering (1) Engineering drawings. reached between Lessee and the surface data which will: (2) Design data sheets. owner, rubject to approval of the Super(a) ~L~-ure their availability to seien(3) Other contractor-prepared docuintendant, Lessee may condition the well fists, engineers, and other personnel en- ments. for use as a fresh water well and shall gaged in research, development, te~, so indicate on the plugging record. The evaluation, procurement, production, § 267.3 Defmhion~. manner in which plugging materials shall supply, and maintenance functions. (a) E~gine~r~nff data. (1) That pot'be introduced and the type of materials (b) Assure the rapid distribution of tion of technical data contained in docuso used shall be subject to the approval high quality, reliable data both within ments prepared by a design activity to of the Inspector. Within 10 days after the DoD and to eligible industry groups disclose and describe configuration, deplugging, Lessee shall file with the Super- 6ubject to considerations of ~ity; sign form and fit, performance, operaintendant a complete report of the plug- limited rights of the Federal Govern- tion, reliability° maintainability, quality ging of each well. When any well is ment; reimbursement costs, where ap-control, or other engineering features of plugged and abandoned Lessee shall, propriate; and DoD policies governing items, materials, methods, practices, within 00 days, clean up the prem2ses public release (see DoD Directive 5100.36, procedures, processes, and services. around such well to the satisfaction of "DoD Technical Xuformatlon," dated (2) The principal documentation of the Superintendent or his authorized Dec. 31, 1962). engineering data occurs in standards, representative: Provided, That the 90(c) Establish a broader engineering specifications, engineering drawings, asday period may be extended a reasonable data base. soclated lists (lists of material, par~ time in the discretion of the Superin(d) Enlarge the opportunities for lists, data lists, and Index lists), ll~m achieving improved design, standardiza- data sheets, performance Parameters, tendent. (d) In event Lessee shall fail to plug tion, competitive procurement, and item test procedures or reports, engineering properly any dry or abandoned well in entry control objectives set forth in DoD configuration changes, and other alcottaccordance with the regulations in this Directive 4120.3, '~efense Standardiza- merits providing design data or design par~, the Superintendent may, after 5 tion Program," dated April 23, 1985, and disclosure. days' notice to the parties in interest, DoD Instruction 4120.8, '~Use of Stand(b) Data management. The function plug such well at the expense x)f Lessee or ardization Documents Issued by Industry of determining and validating data rehis surety plus an additional 25 percent Groups," dated Augu~ 9, 1960 (25 F/~. quirements, planning for the timely and 8606), and encourage the reuse of pre- economical acquisition of data, and into cover administrative costs. vious design solutions. suring the adequacy and availability of §§ 183.82--183.84 [Revoked] (e) t~acllitate and encourage the de- acquired data for their intended use. 2. Sections 183.82, 183.83, and 183.84: velopment, promotion, and use by in(c) Data systems. ManuM are superseded by the amendment in dustry groups of improved engineering mechanized refr~eva~for the recovery or methods of item 1 above, and arc revoked. data systems and techniques. selected data from a collection of ilko (f) Provide a basis for the develop3. Section 183.91(a)(10) is revised to data for the purpose of obtaining spement and use of improved engineering cific information. Retrieval tncludcs all read as follows: data retrieval systems throughout the the procedures used to identify, search, § 183.91 Amou,t of penaltieS. defense community. find, and remove specific information or (g) ~stablish the users' confidence in data stored. It excludes both the (a) * * * the technical validity and integrity of creation and the use of the data. (I0) ~or failure to file plugging re- DoD-contrelled engineering data to in§ ports as required by § 163.81 and for fail- sure its reuse in furtherance of DoD 267.4 Concept. ure to file reports, and remit royalties objegtives. For maximum applicability, engineerrequired by § 183.45, $5 a day for the Ing data used by ~clentist~ engineers, first violation and $10 a day for each § 267.2 Applicability and scope. and other personnel engaged in research, violation thereafter. The provlsfons of this part apply to development, test, evaluation, procure* all DoD components engaged in re~ ment, production, supply, and mainte$ $ * $ [P,I~. Dec. 67-6691; Filed, June 14, 1967; search, development, test, and evs/uation nance functions must be accurate, (RDT&E) ,.procurement, production, and current, and properly organized, 8:46 a~n.l

Title o..,.,u.= o...,0.. DEFENSE

ao.viUes invol g

FEDERAL REGISTER, VOL. 32, NO. 115~THURSDAY~ JUNE 15, 1967

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OF FEDERAL REGULATUONS

TITLE 25 Revised as of Januan/ I, 1968

CONTAINING A CODIFICATION OF DOCUMENTS OF GENERAL APPLIC,~BILITY AND FUTURE EFFECT AS OF JANUARY i, 1968

With Ancillaries

Published by the Office of the Federal Register, National Archives and Records Service General Services Administration, as a Special Edition of the Federal Register Pursuant to Section 11 of the Federal Register Act as Amended

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CIIAPTER I--Btlre

Cite this Code C F R thus: 25 CFR 1.2

c,,.,PT~R u--Ind

CI I.\PTI".R

lIl--In(

(]ROSS REFERENCI

on reservations : Burcau of Land ~, 43 CFR Part 22 NOTE: Other r, Chapter IV, Title Chapter I, Title 4 Code of Federal R,

vi
........................................................ .~--.:'",:~ ........... :~. " .............. ', ,~,:,,.,. ',+~ ...~,~+,+~,,,'4-, ~: ..,,.,: ,~ ,-: ::~ i.ii~

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Title 2S--Chapter I
lllng into the mine when in actual use. and such :, or covering shall be ood condition during the g lease. where hoisting is clone )r fenced on three sides ;ide equipped with a gate ept closed when acces~ to ; necessary. ¯ drill holes shall be sea the surface unless used r other mining purposes, they shall be cased or nted from caving or beI to persons or animals. sing shall extend 4 feet ¯ of the hole. ;ration between snperin. l district mining superv|. [ct mining supervisor of )Ifice, Geological Survey, Jgh his assistants, shall ;ees for the superintendreports, drill logs, maps, d all other information ing operations required ons to be submitted by l maintain a file thereof rodent. )f the Geological Survey ing to lead and zinc ~ Indian lands shall be fable for inspection and zeal employees of the n Affairs, and the em~ological Survey assigned ; to Indian lands shall 3rlzed employees of the n Affairs such informaical advice as may be )propriate to the most .tion in the conduct of ,ed to the two bureaus. r facilities and service d for the benefit of the oyees of the Geological ;ureau of Indian Affairs. s of any kind will be ;Ical Survey representaan, but such representsfull authority to issue ~,rs to operators relative nd operations: i. e., the dl operations, including racy, health and sanita~tion of material or eco~h orders to be prepared with the advice of the local representative of the Bureau of Indian Affairs. CROSS Rm'~Z~CX: For regulations of the Geological Survey, see 30 CFR Chapter II. § 176.23a Suspension of operations and produetion on leases for minerab other than oii and gas. The provisions of § 172.15a of this subchapter are applicable to leases under this part.
[24 F-R. 9511, Nov. 26, 1959]

§ 176.25

§ 176.24 Books and accounts. (a) The lessee shall maintain books Ln which shall be kept a correct account of all ore and rock mined on the tract, of all ore put through the mill, of all lead and zinc concentrates produced, and of all ore and concentrates sold and to whom sold, the weight, assay value, moisture content, base price,, dates penalties, and price received, and the percentage of lead and zinc recovered. A correct statement of the same for each month shall be furnished the office of the district mining supervisor pursuant to § 176.23 not later than 15 days after the first of each month f.~r the preceding month,

together with a certificate from the smelter showing the unit price paid for the mineral purchased and the amount of ore and concentrates purchased dur£ug the month from said land. (b) An audit of the lessee's accounts and books shall be made semiannually, or at such other times as may be directed by the Secretary of the Intermr, by certified public accountants, approved by the Secretary, and at the expen.~e of the lessee. The lea,see shall furmsh free of cost a copy of such semiannual or other audit, through the offwe of t!~e mqrict mining supervisor pur~uant t~ ~ 1";(; 23, within 30 days after tl,~.' ( ):n; :, t', ::~ of each auditing. {} 176.25 Other min~'ral, a,.l ,l~m~I.,,*g lead and zinc ,,,i,,,'r.l-. '~%

Except

as provid~.d 1~: ,, :-, c .,~

"k

leases on Quap.aw II:(l::t:~ i~,~:: ! . t : 'v-::~ ing minerals otht'r lha:l b,;~: ~::.~ :::ic~

and for lead alld /:lie }tIAI ~t:- ,~ :,t!,,(l minerals below the h~Jll/:,II ,:f t~:t' l,(k
stratum known as the t{ct d N;~: iI: ~ l-'~rmation, shall be made pur,~ma:~t to) the provisions of Part 172 of thls bubchapter.
]26 F.R. 1910, Mar. 4, 1961]

SUBCHAPTER Q--~OIL AND (;AS
PART 183~LEASING OF OSAGE RES- Sec. 183.18 Leases subject to current regulations. ERVATION LANDS FOR OIL AND 183.19 Penalty for violation of lease terms. 183.20 Bonds. GAS MINING 183.21 Provisions of forms made a part of Sec. regulations. 183.1 Definitions. GAS h:ININO LEASES O~L MINING LFzLSr~ 183.2 183.3 183.4 183.5
183.8

183.7 183.8 183.9 183.10 183.11 183.12

Royalty payments. Government reserves right to purchase oil Drilling obligations. Use of surface lands; settlement of damages to lands and crops. Prohibition of waste; Intoxicating liquors not permitted; books and accounts. Improvements on the land. Lands may be leased separately for
gas.

183.22 Certain provisions of oil mining lease identical with gas mining lease. 188.23 Contracts for the sale of gas for Industrial purposes.

UTILIZATION OF CASINO-HEAD GAS WHEN UsED FOR THE ~IANUFACTURE OF GASOLINE 183.24 Royalty on casing-head or natural gasoline, butane, propane, or other liquid hydrocarbon substances extracted irom gas, drip gasoline, or other natural condensate. Casing-head gas contracts and division orders.

183.25

183.13 183.14 183.15 183.16 183.17

Gas wells to be turned over to gas lessee. Oll wells to be turned over to oil lessee. Wells producing both oH and gas. Drilling through gas sand. Deepening welIs. Casing-head gRS. Gas for operating purposes.¯ Surrender of lease. Form of payment.

183.26 Effective date of casing-head gas contracts. lS3.27 Casing-head gas contracts subject to regulations of Interior Departmeat. 183.28 Royalty on casing-head gasoline manufactured from casing-head gas by oil lessees. 183.29 Determining gasoline content of casIng-head gas for royalty purposes.

255

= ................... ¯ .......

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§ 183.1
~aC.

Title 25--Chapter I
Measurement of gas. Reports of sales of casing-head Eas. Oil lessees may be allowed to manufacture casing-head gasoline from casing-head gas. Lessees not relieved by division orders from paying royalties ff purchaser falls to pay. Residue gas to be delivered to gas lessee. Caslng-head gas sold to plants outside of Osage County. Burners for oil or gas used for operating purposes. Measurement of gas used by oil or gaa lessees. AcaKac~ Limitation. See. 183.64 183.65 183.66 183.67 183.68 183.89 183.70 Plats showing location of wells. Rigs to be marked. Line drilling. Notice prior to removal of casing. Two slush pits required. Wa~er control. Productive formations to be prOtected. 183.71 Control devices. 183.72 Waste of gas to be prevented, 183.73 Determining cost of well. 183.74 Oil and gas to be separated. 183.75 Use of gas for lifting oil 183.76 Prevent wastage of oll and gas. 183.77 Approval of Inspector for use of gas for operations. 183.78 Flambeau llgh is. 183.79 Most approved methods to be fcllowed in drilling and producing operations. 183.80 Superintendent to be notified of in. tended operations. 183.81 Shutdown, abandoment, and plug* ging of wellls. 183.82-183.84 [Reserved] 183.85 Disposal of B. 8. and salt water. 183.86 Accidents to be reported. 183.87 Tankage for crude oil. 183.88 Division orders° 183.89 Use of timber' from leased lands. 183.90 (}as wells drilled by oil lessees and vice versa.
PEI~ALTIES FOR VIOLATION OF RF~UL.ATIONS

183.30 183.31 183.32 18333 183~4 183~qfi 183.36 188~q7

¯ agency and reset his duty to enfor
regulations in thJ ib) Inspector.

as Inspector of ol
may be designat, the Interior or tl dian Affairs to su tions on Osage la of the Superinte~ (e) Oil lessee. corporation to wl is made under I part. (d) Gas lessee corporation to wl

183.38

How TO ACQU~RZ ~AS~ OF TRIBAL LANDS Sale of oli leases and gas leases. 183.39 183.40 Corporation and corporate information. 183.41 How to acquire permission to begin operations on homestead allotments. 183.43 Lessee's process agents. 183.44 Lessees subject to superintendent's orders; books and records open to inspection. 183.45 Reports and time of royalty payments.
ASSIGNMENTS

183.46 183.47 183.48 183.49 183.50 183.51 183.52 188.53 183.54 183.55 183.56 183.57 183.58

Approval of lease instruments. Filing of assignments and drilling contracts. Notices. OPERATIONS Commencement of operations. Settlement of dan,ages claimed by persons other than lessee or owner of lands. Well locatlon fees. Information to be given surface owners before commencement of drillIng. Procedure for settlement of damages claimed. Slush pits: fine for failure to provide. Notice to lessees in damage eases. Lessees or tenants may represent surface owners. Lessee's useof water. Settlement of damage claims to surface lands covered by Federal farm loan, Duties of inspectors. Limit percentage of well flow. Unit operating area. Judge whether orders complied with. REQUIREMENTS OF LESSEES

183.91 Amount of l~.~nalties.
EFI~EC~VE DATE OF REGULATIONS

183.92

Regulations to be effective from date of approval. FORMS

183.93 Forms. APPROVAL F~ 183.94 Amount of fee.
HEARINGS AND APPEALS

183.95 HeRring and appeals. AUTHORITY: The provisions of this Part 183 issued under sec. 3. 34 Stat. 543. Interpre~ or apply secs. 1, 2, 45 Stat. 1478, 1479, unless otherwise noted. So~ncz: The provisions of this Part 183 appear at 22 F.R. 10612, Dec. 24, 1957, unless otherwise noted.

POWERS AND DUTIES OF INSPECTORS 183.59 183.60 183.60a 183.81

183.62 183.63

Permission to start operations. Drilling records.

§ 183.1 Definitions. The following words or terms when used in the lease and regulations in this part shall have the meaning sho~m in this section: (a) Superintendent. The Superin. tendent of the Osage Agency, Pawhuska, Oklahoma. in C~arge of the Osage Agency and Reservation. or any other person who may be in charge of such 256

under the regula OIL M § 183.2 Royalty (a) Royalty o mary or gas in lessee shall pay the Superintende a royalty, the sur gross proceeds fr( the oii used by ~h and operation pu less the Osage "I al~proval of the ( Affairs, shall elec oil; payment sha of sale or removaJ payments are m and settlement actual selling pri the highest post~ Mid-Continent c sale or removal: the quantity of producing wells. according to the tional quarter-se ered by the leas, full quarter-secti, month is sulficiex dred or more ba the royalty on suc (b) Royalty ol ondary recovery iniection. When of oil recoverable injection method; mation or format: or partially deple Tribal Council rr royalty rate to be lntendent, the su 12~.~ percent of tl sales of oil prod~ covery processes. tlon, after deduct

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i showing location of wells. to be marked. drilling. :e prior to removal of casing. slush pits required. :r con trol. ucUvc formations tO be prO:ted. rol devices. :e of gas to be prevented. training cost of well. nd gas to be separated. )f gas for lifting oil. ~nt wastage of oll and gas. oval of inspector for use of gas ¯ operations. Lbeau lights. approved methods to be fcl* sed in drilling and producing eratlons. 'rlntendent to be notified of in. ,~ded operations. xiown, abandoment, and plug* ~g of wells. : [Reserved| osal of B, S. and salt water. dents to be reported.

rage for crude off.
;ion orders. )f timber from leased lands. wells drilled by oil lessees and ~e versa. FOR VIOLATION OF RI~ULATIONS unt of penalties. rIVE DATE OF REGULATIONS llatlons to be effective from date approval. FoaMs

AP~OVAL FEZ
,Unt of fee. ~RINGS AND ~t~PF_~S ring and appeals, r: The provisions of this Part inder sec. 3, 34 Stat. 543. Inter° ly sees. 1. 2. 45 Stat. 1478, 1479, ¯ wise noted. .~.e provis!ons of this Part 183 ! F.R. 10612, Dec. 24, 1957, unless ~ted.

Pefinitions. owing words or terms when lease and regulations in this have the meaning shown in
.I:

erintendent. The Superinthe Osage Agency, Pawhusl~, i"din charge of the Osage Reservation, or any other Lo may be in charge of such

§ 183.4 agency and reservation, and it shall be lessee for development and operation his duty to enforce co.~pliance with the purposes on the lease, unless the Osage regulations in tl~is part. Tribal Council, with the approval of the (b) Inspector. Any person appointed Commissioner of Indian Affairs, shall as Inspector of oil and gas wells, or who elect to take the royalty in oil; payment may be designated by the Secretary of to be made at the time of sale or removal the Interior or the Commissioner of In- of the oil. except where payments are dian Affairs to supervise oil or gas opera- made on division orders and settlement tions on Osage lands under the direction shall be based on the actual selling of the Superintendent. price, but at not less than the highest (c) Off lessee. Any person, firm, or posted market price in the Mid-Concorporation to w]~om an oil mining lease tinent oil field on the day of sale or is made under the regulations in this removal. part. (c) Royalty in kind. Should the (d) Gas lessee. Any person, firm, or lessor, with the approval of the Comcorporation to whom a gas lease is made missioner of Indian Affairs, elect to take under the regulations in this part. the royalty in oil, the lessee shall furnish free storage for the royalty oll for OTM ~ug~u LEASES not exceeding 30 days. § 183.2 Royalty pa)ments. [22 F.R. 10612, Dee. 24, 1957, as amended at 27 F£t. 9512, .Sept. 26, 1962] (a) Royalty on oil produced by primary or gas injection methods. The § 183.3 Government reserves right to lessee shall pay or cause to be paid to purchase oil. the Superintendent, for the lessor as Any of the executive departments of a royalty, the sum of 16% percent of the gross proceeds from sales after deducting the United States Government shall have the oil used by the lessee for development the option to purchase at the highest and operation purposes on the lease, un- posted market price on the day of sale all or any part of the oil produced under less the Osage Tribal Council, with the approval of the Commissioner of Indian any lease. 'The Commissioner of Indian Affairs, shall elect to take the royalty in Affairs may impose restrictions as to oil; payment shall be made at the time time or times for drilling of wells and as of sale or removal of the o~!. except where to the production from any well or wells payments are made on division orders, whcn in his judgment or the judgment of and settlement shall be based on the his representative, such action may be actual selling pr!ice, but at not less than necessary or proper for the protection of the highest posted market price in the the natural resources of the leased land Mid-Continent oil field on the day of and the interests of the Osage Tribe of sale or removal:: Provided, That when Indians. ancl in taking action, the Comthe quantity of oil taken from all the missioner may take into consideration, among other things, Federal laws, State producing wells on any quarter-section according to the public survey, or frac- laws, or regulations by competent Fedtional quarter-section if the land cov- eral or Sta~e authorities or lawful agreements among operators regulating either ered by the lease does not include the full quarter-section, during any calendar drilling or :production, or both. month is sufficient to average one hundred or more barrels per well per day, § 183.4 Drilling obligations. the royalty on such oil shall be 20 percent. (a) Lessee shall drill at least one well (b) Royalty on oil produced by secto the Missiissippt Lime unless oil or gas ondary recovery processes other than gas is found in paying quantities at a lesser injection. When the estimated rese:ves depth, on the land covered by his lease, of oil recoverable by primary and;or gas within 12 months from the date of apinjection methods from a specified for- proval of the lease, or the lease may be mation or formations have been depleted or partially depleted, the lessee and the held for the full five-year primary term Tribal Council may agree upon a new without drilling, upon payment to the Superintendent for the lessor of rental royalty rate to be approved by the Superat the rate of one dollar per acre per intendent, the sum to be not less than 12V2 percent of the gross proceeds from annum, payable annually in advance, beginning one year after the date of apsales of oil produced by secondary recovery processes, other than gas inJec= proval of the lease. This lease shall tertion, after deducting the oil used by the minate as to both parties ~mless such

Title 25--.Chopter I

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§ 183.5

Title 25mChapter I be a lien on all ec on leased premise 122 F.R. 10612. De{ 27 F.R. 9512, ~ept. 2 tions pertaining t, 161 of tlxis chapte § 183.6 Prohlbll ing liquors n accounts. The lessee sha] a workmanlike m and s~lffer none the land, not pe~ maintained on i control, nor a liquors to be int sold, or given a~ such premises; account of all o disbursements, f7 of such when regulations or b sentative of the § 183.7 lmprov All buildings a menlo, including we~ls drilled 3 ye expiration of th part of said lane erty of the surf~ of the lease, boiler houses, drilling outfits, chinery, and th nonpaying wells drilled less tha, producing oil ox lease remain tt lessee: Provided, not be removed be purchased f owner of the oil may be mutuall failure to agree by arbitration. § 183.8 Lands : for gas. The lessee sha understanding ! thereby may be party who shall to all gas except § 183.9 Gas we gas lessee. If the oil gas well he shall the well any of tl
CROSS REFERENCl~

advance rental shall be received at the egress, and the right-of-way to any point Osage Agency or shall have been mailed of operations. Lessee may use water as indicated by postmark, on or before from streams and natural water courses the due date: Provided, That the time for lease operations as set out in § 183.57. within which a well shall be drilled shall Before commencing operations for the drillir~ of any weli the lessee shall pay not begin to run on any restricted homestead selection until the consent of the to the surface owner the sum of $200 Superintendent to drilling on such home- for each well located on cultivated land stead shall have been given, nor shall (tilled or cultivated within the immedadvance rental become due until the next iately pr.~eding three years, and includanniversary date of the lease following ing hay-meadow land), $150 for open pasture land, and $100 for such location the date of such consent: Provided ]urther, That the Superintendent in his dks- on brush or wooded lands, and. other cretion may order the drilling of any lands not suitable for cultivation. Upon lease, if in his opinion the :nterests of payment of such ',location site :money, the Osage Tribe warrant: Provfded ]ur- lessee shall be entitled t9 possession. Lother, That whenever the Commissioner cation sites shall be held to the n:iniof Indian Affairs shall consider the mar- mum area essential[ for operations, ~ nd keting facilities inadequate to take care in no event shall exceed one and one-half of the production he may direct suspenacres in area. Lessee shall also pay tank sion of drilling operations on this lease. site fees at the rate of $20 per tank of The completion of a well to the Missis- not exceeding 1,000 barreis capacity: sippi Lime, or production of oil or gas in Provided, however, That no tank site fee shall be paid for a tank temporarily set paying quantities from a lesser depth than the Mississippi Lime, for such time on a well location site for testing puras production shall continue, after the po3es durin~ the completion of the well. Tank sites shall be held to the minimum lease has entered a rental status, shall relieve the lessee from any further pay- area essential to efficient operations, ment of rentals for the balance of the and in no event shall exceed an area of primary term of the lease for which 50 feet square per tank. The sum to be paid for an oil tank site of larger' capacrental has not been paid. Should such production cease, rental shall com- ity and occupying a greater area shall be mence on the next anniversary date of agreed upon between the surface owner the lease. Recital shall be paid on the and the lessee and on failure to agree, basis of a full year, and no refund will the same shall be fixed by arbitration. be made of advance rental paid in com(b) All claims for damages for use of pliance with the regulations in this part. the surface other than that included in (b) Prior to the expiration of a term the location and tank sites, all claims for of a lease, the Osage Tribal Council may, damages to growing crops or improvewith the approval of the Superintendent, merits on the lands and all other claims and a finding by him that such act"on for damages to the surface owners or is in the best interest of the Osage Tribe, their lessees arising from operations of grant an extension of the term of the the oil or gas lessees shall be settled by lease for a period of not to exceed six arbitration whenever the parties are unmonths for the purpose of enabling the able to agree concerning the same. But lessee to drill a well to the Mississippi nothing contained in this section shall be Lime unless ell or gas is found in paying construed to deny to either party to the quantities at a lesser depth. controversy the right to appeal to the [23 F.R. 7133, Sept. 16, 1958, as amended at courts in the event he is dissatisfied with 27 F.I~. 9512, Sept. 26, 1962] the av.'ard to or against him. § 1'83.5 Use of surface lands; settlement (c) All agreeme~ (or authenticated of damages to lands and crops. copies thereof) providing for the settle(a) Lessee shall have the right to use ment of damages shall be filed in the so much of the surface of the land within Osage Agency, if the surface owner is a the Osage t~eservation as may be reasonrestricted Indian, and all such amounts able for operations, including the right which may be due and payable to any to lay and maintain pipelines, telepi~one such Indian shall be paid to the superand telegraph lines, pull rods and other inter, dent and by him immediate}y reappliances necessary for the operation mitted to the Indian entitled thereto of ~he wells, also the right of ingress and All sums due as r~yalty or damages shall ,058

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Title 25--Chapter I le right-of-way to any point s. Lessee may use water and natural water courses rations as set out in § 183.57. ~encing operations for the weli the lessee shall pay ce owner the sum of $200 L located on cultivated land itivated within the immeding three years, and includdow land), $150 for open ¯ and $100 for such location wooded lands, and other table for cultivation. Upon such location site money, entitled t3 possession. Lo~hall be held to the rni.ni;sential for operations, ~ nd tall exceed one and one-half Lessee shall also pay tank 'he rate of $20 9er tank of Lg 1,000 barrels capacity: vever, That no tank site fee for a tank temporarily set :ation site for testing purthe completion of the well. all be held to the minimum ~1 to efficient operations, eat shall exceed an area of e per tank. The sum to be il tank site of larger capac~ying a greater area shall be between the surface owner ~.e and on failure to agree, xll be fixed by arbitration. ires for damages for use of ,ther than that included in Lad tank sites, all claims for ;rowing crops or improvelands and all other claims to the surface owners or arising from operations of lessees shall be settled by henever the parties are unconcerning the same. But tined in this section shall be deny to either party to the ;he right to appeal to the event he is dissatisfied with ~r against him. ¯ eemepts Cot authenticated f) providing for the settle1ages shall be filed in the ~-, if the surface owner is a 2Jan. and all such amounts )e due and payable to any shall be paid to the superd by him immcdiately reLe Indian entitled the:eto as royalty or damages shall be a lien on all equipment and unsold oi1 on leased premises.

§ 183.13

ment, immediately shut the well in and notify the gas lessee and the superin[22 F.R. 10612. Dec, 24, 1957, as amended at tendent. In the event the gas lessee does 27 F~. 9512, Sept. 26, 1962 ] not within 30 days after receiving notice elect to take over such well and reimCROSS REFERENCe.S: For additional regulaburse the oil lessee the cost of drilling tions pertaining to rights-of-way, see Part 161 of tills chapter. the same, including all damages paid, in addition to the cost in place of casing, § 183.6 Prohlbit!ion of waste; intoxicat- tubing, and other equipment, the ell ing liquors not permitted; books and lessee shall immediately confine the gas aceounls. to the original stratum, and the disposiThe lessee shall carry on operations in tion of such well shall be subject to the a workmanlike manner, commit no waste approval of the superintendent. and suffer none 'to be committed upon § 183.10 Oil wells to be turned over to the land, not permit any nuisance to be oil lessee. maintained on the premises under his control, nor allow any intoxicating If the gas lessee shall drill an liquors to be introduced, brought upon, oil well upon the leased lands, he shall sold, or given away for any purposes on immediately, without removing from the such premises; also keep an accurate well any of the casing or other equipaccount of all operations, receipts, and ment. notify the oil lessee and the superdisbursements, furnishing sworn reports intendent. In the event the oil lessee of such when and as required by the does not within 30 days a%er receipt regulations or by an authorized repre- of notice elect to take over such well he sentative of the Secretary of the Interior. shall immediately so notify the gas lessee, and the disposition of such well shall be § 183.7 Improvements on the land. subject to the approval of the superinAll buildings and permanent improve- tendent. Should the oil lessee elect to ments, including c.asings of all producing take over the well, he shall pay the gas we~ls drilled 3 years or more prior to the lessee the cost of drilling the same, inexpiration of the lease, shall remain a cluding all damages paid in addition to part of said land and become the propthe cost in place of casing ~-nd other erty of the surface owner at expiration equipment. of the lease, excepting tools, tanks, boiler houses, pipehnes, pumping and § 183.11 Wells producing both oil and drilling outfits, derricks, engines, magas. chinery, and the casings of all dry or If the oil lessee shall well nonpaying wells. The casings of wells which produces both oil anddrill acomdrilled less than 3 years prior to and mercial quantities from thegas in sand same producing oil on the expiration of the he shall immediately notify the gas lessee lease remain the property of the oil and together they shall arrange for the lessee: Provided, That such casings shall not be removed from the wells but shall separation and utilization of the oil and gas. and the cost pertaining to said well. be purchased from the lessee by the owner of the oil :rights at such price as § 183.12 Drilling through gas sand. may be mutually agreed upon, and on Whenever oil and gas are found in sepfailure to agree the price shall be ;axed arate sands, and the oil lessee desires to by arbitration. drill throuoh the gas sand for the oil, 183.8 Lands may be leased separately he may do so provided the m hod of pl ofor gas. tccting the gas sand shall be approved by the inspector. The lessee shall accept a lease with the understanding that the lands covered § 183.13 Deepeningweils. thereby may be leased to some other party who shall have the exclusive right If at any time any oil or gas well beto all gas except as otherwise provided. comes unprofitable and the oil or gas lessee desires to deepen the vame, such § 183.9 Gas wel]ls to be turned over to action as may be mutually agreed upon gas lessee. may be taken not in conflict with tl~c regulations. Upon failure to agree the disIf the oil :lessee shall drill a gas well he shall, without removing from position of such well shall be subject to the well any of the casing or other equip- the approval ol the superintendent. 059

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§ 183.14

Title 25~Chapter I § 183.19 Penahy for violationL of lea~ terms. Violation of any of the terms or conditions of any' lease or of the regula. tions in this part shall subject the le~e to cancellation by the Superintendent, or the lessee to a fine of not ,exceeding $500 per day for each and every day the terms of the lease or of the regulatiom are violated, or the orders of the Super. lntendent in reference thereto are not complied with, or to both such fine and cancellatmn in the discretion of the Su. perintendent: Provided, That prior to cancellation of a lease or the imposition of a fine as provided for in this section, the lessee shall be entitled to notice and hearing with respect to the tezlns of the lease or of the regulations violated, which hearing shall be held by the Superintendent. § 183.20 Bonds. (a) Lessees shall furnish ,with each off lease and each gas lease, to be filed at the time the lease is presented, a bond upon Form D, 'with a surety company duly authorized to execute bonds. Such bonds shall be in the sum of $1,000 for each quarter-section or fractional quarter-section unit covered by the lease: Provided, however, That the lessee may file one bond, Form G, covering all leases to which he or l~hey are or may become parties instead of a separate bond in each case, such bond to be in the penal sum. of $15.000. (b) In lieu of the bonds required under paragraph {a} of this section; a lessee may furnish a bond (Form 5-156) in the sum of $75.000 for full nation-wide coverage with an acceptable company authorized to act as sole surety to cover al! oil ..nd ga.~ leases without geographic or acre,-e limitation to winch the lessee is o~" ~ :~ecome a party. ,c) : ' , *~ht is specifically reserved to 'no .... t,e amount of bonds pre3~: co paragraph {a) of this section in. y .~'ticular case when the Superintend, at a~ems :it proper to do so. The nat,bnwide bond may be increased at any time in the discretion of the Secretary of the Interior. (d) Form H should be used in the preparation of a bond covering a lease acquired through assignment where the assignee does not have a collective bond, or the surety does not execute its consent to remain bound under the original bond given to secure the faithful performance of t: the lease. § 183.21 Pro part of re "~e provis'. ment, and sul as Forms A, hereby made this part, and adhere strictl: GA: § 183.22 Cel ing lease lease. The terms leases in effe~ entire acreag~ vary somewh nu_!rem..ent~. ~ of surface, p~ sons of well h lessee are pr~ of oil lessee. part will gove leases in the applicable. § 183.23 Co~ for indu,. (a) All cot for industrial ments showil and schedules tracts with d( filed with the be subject to missioner of I his opinion, t Tribe or the i (b~ In the, preference sh: domestic cot otherwise in t for the indus~ tain a clause is shown to tl~ missioner thal mestic consu~ the Commissi terminate upo notice from t~ the Commiss,.', immediately t of gas to indu is of the opini~ for domestic nished to ind~ sumers shall meter rates:

§ 183.14 Casing.head gala All casing-head gas shall belong to the oil lessee and when used for the manufacture of gasoline shall be metered and be subject to a royalty of 16% percent based on the market value of the gasoline contents, and all such gas not utilized by the oil lessee on his leased premises or for operating other adjoining leases within the Osage Reservation, shall belong to the gas lessee, subject to the prescribed royalty of 16% percent. § 183.15 Gas for operating purposes. The gas lessee shall furnish the oil lessee sufficient gas for drilling and operating purposes at a rate to be agreed upon, or on failure to agree the rate shall be fixed by arbitration: Provided, That the oil lessee shall make necessary connections between the well and the meter whenever possible. § 183.16 Surrender of !case. The oil lessee may at any time, by paylng to the Superintendent the sum of one dollar, surrender all or any quarter-section or fractional part of quarter-section where the lease does not cover the full quarter-section, and have the lease cancelled as to the lands, surrendered: and be relieved from all further obligations and liabtlit~,es thereunder, as to the part surrendered: Provided, That if this lease has been recorded, the lessee shall execute a release and record the same in the proper office. Such surrender shall not entitle the lessee to a refund of the unused portion of rental paid in lieu of development, nor shall it relieve the lessee and his sureties of any :~bligation incurred prior to such surrender. [23 F2:t. 7134. Sept. 16, 1958] § 183.17 Form of payment. All amounts due and payable under a lease shall be paid to the Superintenden~ by check or bank draft on a solvent bank. § 183.18 Leases subject to current regulations. Leases shall be subject to current regulations prescribed by the Secretary of the Interior, relative to such leases, all of which are made a part of such ]leases: Provided, That no regulations made after the approval of any lease shall operate to affect the terra of lease, rate of royalty, rental or acreage, unless agreed to by both parties.

260 L_

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Title 25-~Chapter I Penalty for violation of lease of any of the terms or of any lease or of the regula. s part shall subject the lease tion by the Superintendent, .~e to a fine of not exceeding y for each and every day the :e lease or of the regulatiom l, or the orders of the Super. Ln reference thereto are not ith, or to both such fine and I in the discretion of the SUo ~t: Provided, That prior to of a lease or the imposition ; provided for in this section, hall be entitled to notice and .h respect to the terms of the ~f the regulations violated, ring shall be held by the dent. ~onds. ~'es shall furnish with each kd each gas lease, to be filed the lease is presented, a bond D, with a surety company :lzed to execute bonds. Such i be in the sum of $1.000 for ~r-section or fractional quar. unit covered by the lease: :owever, That the lessee may d, Form G, covering all leases e or they are or may become cad of a separate bond in each bond to be in the penal sum. eu of the bonds required un~ph (a) of this section; a lesmish a bond (Form 5-156) in $75,000 for full nation-wide Tith an acceptable company to act as sole surety to cover gas leases without geographic limitg' . n to wnmi~ the lessee ecGme ,~arty. righ: ~: .ciflcaUy reserved ~.:Jt of bonds pre.e ~.~ ,j, .~ (a) of this section ;ic~, ~.r ~se when the Superinemc it p'oper to do so. The bond may be increased at any discretion of the Secretary of r. n H should be used in the a of a bond covering a lease arough assignment where the )es not have a collective bond, ety does not execute its contain bound under the original to secure the faithful performance of the terms and conditions of the lease.

§ 183.24

nlshed to an oil lessee may be sold as provided in the gas lessee's contract. (c) All contracts with § 183.21 Provisions of forms made a sumers shall be subject to domestic conthe inspection part of regulations. of the Superintendent. "~2~e provisions of the lease, assignUTILIZATION OF CASING-HEAD GAS WHEN ment. and supporting papers, designated as Forms A, B, D, E, F, G, and H are USED FOR THE MANUFACTURE OF GASO° LINE hereby made a part of the regulations in this part, and lessees will be required to § 1~3.£~ Royahy on casing-head or natadhere strictly to the con~t_.~ons thereof. ural gasoline, bulane, propane, or other iiquid hydrocarbon substances GAs MrmNo LEASES e×l~c;ed from gas, drip gasoline, or other natural condensate. § 183.22 Certain provisions of oil mining lease identical with gas mining (a) A royalty of 16% percent of the lease. gross proceeds of sales shall be paid on The terms of the several gas mining the value of one-third (or the lessee's leases in e,ffect, covering-practically the portion if greater than one-third) of all entire acreage of the Osage Reservation, casing-head or natural gasoline, butane, vary somewhat as to development re- propane, or other liqu|d, hydrocarbon ouire--,nents, but ~rovi~ions relative to use ~t~bsmnces extracted from the gas proof surface, payment of damages by rea- duced from the leasehold. The value of sons of well locations, etc., and duties of the remainder is an allowance for the lessee are practicaly identical with that cost of manufacture, and no royalty of oil lessee. The regulations in this thereon is required. The royalty shall be part will govern operations under all gas computed on the sale price received by leases in the Osage Reservation so far as the manufacturers of such products, or such higher :price the lessee may receive, applicable. the same to be reported under oath and § 183.23 Comracts for the sale of gas remitted to the Superintendent not later for industrial purposes. than the 25th of the succeeding month (a) All contracts for the sale of gas for all such products sold during the previous month. If the manufacturer of for industrial purposes and sworn statements showing the terms, conditions, any product extracted from casing-head gas produced from an Osage leasehold and schedules of prices contained in contracts with domestic consumers shall be should sell his product at a price below filed with the Superintendent, and shall that obtained by other manufacturers be subject to the approval of the Com- selling such product in the open market missioner of Indian Affairs whenever, in during a particular month, the Superhis opinion, the interests of the Osage intendent shall notify said manufacturer Tribe or the public require such action. of such discrepancy and require settle(b) In the sale and disposition of gas, ment for royalty upon the price preference shall at all i,;mes be given to obtained by manufacturersaverage such selling domestic consumers, unless provided otherwise in the lease, and all contracts product in the open market during the same period. The place of sale of liquid for the industrial use of gas shall contain a clause to the effect that when it hydrocarbon extracted from gas, for is shown to the satisfaction of the Com- royalty purposes, shall be at the plant missioner that such gas is needed for dowhere manufactured. mestic consumers within an area fixed by (b) The royalty on all drip gasoline, the Commissioner. such contract shall or other natural condensate recovered terminate upon the expiration of 30 days' from gas produced from the leased lands notice from the Commissioner, and that without resort to manufacturing process the Commissioner shall have authority shall be 16~} percent of the gross proimmediately to suspend the furnishing ceeds from sales, except that such subof g~s to industrial consumers when he s*ance, if processed in a casing-head is of the opinion that sucn gas is needed for domestic consumers. All gas fur- gasoline plant shall be treated for royalty purposes as though it were gasoline. nished to industrial and domestic consumers shall be metered and sold at I22 F.R. 1061')L Dec. 24, 1957, as amended at meter rates: Provided, That gas fur- 27 F.R. 95130 Sept. 26, 19e2] 261

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§ 183.g5

Title 25---Chapter I § 183.31
gas.

§ 183.25 Caslng-head gas contracts and be at the rate of 162£ percent (or the division orders. royalty specified in the lease) to be computed on 33~b percent of the gasoline Contracts and division orders shall be extracted as provided in § 183.24, and entered into between a lessee and any other person or corporation for the sale which shall be subject to change as pro. of casing-head gas, which shall provide vided in § 183.27. for a minimum royalty interest for the § 1~3.29 Determining gasoline content lessor of 16~ percent of 331/3 percent of easing-head gas for royalty put. of the value of the gasoline extracted, poses, unless it is sold on a higher basis, in The gasoline content of all casing. which event it shall be computed on such head gas per 1,000 cubic feet for royalty basis. purposes shall be determined by divtd. § 183.26 Effective date of casing-head ing the total amount of gasoline extracted, marketed, or utilized during gas contracts. any month, after ,deducting all naphtha COntracts for the sale of casing-head or other products ~,,sed for blending pur. gas entered into between lessees and gas others shall be filed with the superin- poses, by the amount of casing-head er~. used in such plan~k as shown by met tendent within 30 d~vs efter d~te cf in cases where one gasoline plant put. execution, and shall be effective only chases casing-head gas from more than from date of approval by the superin- one oll lessee and it is impossible to detendent. termine from the plant operations the § 183.27 Casing-head gas contracts snb- gasoline content of casing-head gas from ject to regulations of Interior De- any particular lease, they may use any physical field test desired to determine partment. the productivity of pro. All contracts for the sale of casing- rating the 33 V~for the purpose value or percent of the head gas shall be made subject to the rules and regulations of the Department all gasoline extracted from the different but now existing or hereafter to be promul- leases, shall in all cases the minimum royalty be 16~ percent of 33 P~ per. gated, and shall provide that § 183.24 in cent of the gross amount of gasoline exregard to the basis of determining the tracted whether paid by the oil lessee royalty, may be revised by the Secrethe operator of tary of the Interior upon notice to all or by a division order the gasoline plant when has been executed parties concerned, and an opportunity being given them to be heard: Provided, and approved by the superintendent. That such revision shall not apply to 183.30 Measurement of gas, contracts approved under the regulations Gas of all kinds (except gas used for In this part prior to any such revision purposes of production on the leasehold or change which will in any way alter the or unavoidably lost) is subject to royalty, terms of the contract, rate of royalty, and all gas shall be measured by meter method of computing royalty, or basis of (preferably of the orifice-meter type) such computation, without thv written unless otherwise agreed to by the Superconsent of the parties thereto filed with intendent. All gas meters must be apthe superintendent. Contracts hereafter proved by the Superintendent and in. executed shall also provide that they may stalled at the expense of the lessee at be cancelled by the superintendent for such places as may be agreed to by the violation of the terms thereof or the Superintendent. For computing the regulations, after 30 days' notice to the volume of all gas produced, sold, or subparties concerned and an opportunity ject to royalty, the standard of pressure to be heard has been afforded them,, subshall be 10 ounces above an atmospheric pressure of 14.4 pounds to t:he square ject to appeal to the Secretary of the Interior within 30 days from notice of inch, regardless of the atmospheric pressure at the point of measurement, decision of the superintendent. and the standard of temperature shall be § 183.28 Royalty on casing-head ~as- 60~ F. All measurements of gas shall ollne manufactured from casing-head be adjusted by computation to these gas by oil lessees. standards, regardless of the pressure When oil lessees manufacture easingand temperature at which the gas was head gasoline from casing-head gas pro- actually measured, unless otherwise auduced from their own leases, payment thorized in writ~Lng by the Superintendfor the royalty interest of the lessor shall ent. 262

Reporl

Sworn statem( the superintende: ers or persons in plants to whom , showing: (a) vol purchased from total amount of any plant and is purchased fro lessee method I productivity of tl chased from th~ the price at whi, blended gasolim sale, (d) the am~ The statements than the 25th C shall cover the the same time ] of royalty intere by the oil lesse where division cuted and appro ent. The books chaser shall be order of the sup test the accurac~ referred to ab( whether the to3 protected. § 183.32 Oil lc fro::: casing 011 lessees sh~ the superintendq oline from casin their approved 1 of the casing-h mined as pres( sworn stateme § 183.31. accomt the royalty int( the superintend 25th day of eact gas utilized fo casing-head gas ing month, the on the basis lnc § 183.33 l.esse, orders frm~ chaser fails When divisior executed and a~ of the royalty : relieve the lessee payment shoul neglect, or red when it become.~
nllln |I f8(?| llra

Case 1:99-cv-00550-ECH

Document 309-44

Filed 06/30/2008

Page 14 of 30

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Title 25--Chapter I ate of 16% percent (or the ified in the lease) to be com3~ percent of the gasoline s provided in § 183.24, and be subject to change as pro. ~3,27. tetermlning gasoline content ag.head gas for royalty par. ~2ne content of all casing. r 1,000 cubic feet for royalty all be determined by divld. ~I amount of gasoline extrketed, or utilized during after deducting all naphtha bducts used for blending pure amount of casing-head gas ,~ plan?,, as shown by r~eters. rare one gasoline plant purIg-hcad gas from more than :e and it is impossible to dem the plant operations the trent of casing-head gas from lar lease, they may use any ld test desired to determine Jetty for the purpose of pro33 V3 percent of the value ol extracted from the different in all cases the minimum .1 be 16~ percent of 33V3 pergross amount of gasoline exether paid by the oil lessee perator of the gasoline plant sion order has been executed ed by the superintendent. Vleasurement of gas. [1 kinds (except gas used for production on the leasehold Lbly lost) ls subject to royalty, shall be measured by meter of the orifice-meter type) rwise agreed to by the SuperAll gas meters must be apthe Superintendent and in. ~he expense of the lessee at ; as may be agreed to by the dent. For computing the tll gas produced, sold, or subflty, the standard of pressure ounces above an atmospheric f 14.4 pounds to the square .rdless of the atmospheric the point of measurement ndard of temperature shall be I measurements of gas shall d by computation to these regardless of the pressure rature at which the gas was ensured, unless otherwise auL writing by the Superintend§ 183.31
gas.

§ 183.38

Reports of sales of casing-head

Sworn statements shall be made to the superintendent by lessees, and ownera or persons in .charge of the gasoline plants to whom casing-head gas is sold, showing: Ca) volume of caslng-l]ead gas purchased from each lessee. (b) the total amount of gasoline extracted in any plant and where casing-head gas is purchased from more than one off lessee method usecl to determine the l~rOductivity of the casing-head gas purchased from the different lessees, (c) the price at which the merchantable or blended gasoline is sold and dates of sale, ~d} the amount paid to each lessee. The statements shall be made not !et.er t~an the 25th day cf each month and shall cover the preceding month, and at the same time payment shall be made of royalty interest to the superintendent by the oil lessee, or by the purchaser where division orders, have been executed and approved by the superintendent. The books of both lessee and purchaser shall be open to inspection on order of the superintendent so far as to test the accuracy of the sworn statements referred to above, and to deterrmne whether the royalty interests are fully protected. § 183.32 Oil lessees may be allowed to nmntffacture casing-he~d gasoline fron! caslng-head gas. Oil lessees shall secure the consent of the superintendent to manufacture gasoline from casing-head gas produced on their approved leases. The productivity of the casing-head gas shall be determined as prescribed in § 183.29, and sworn statements, as indicated in § 183.31, accompanied by remittance of the royalty interest shall be mailed to the superintendent not later than the 25th day of each month for casing-head gas utilized for the manufacture of casi~g-head gasoline during the preced, tag month, the ccmI~utation to be made on the basis indicated in § 183.24. § 183.33 Lessees not relieved by division orders from paying royalties if purchaser fails to pay. When division orders or contracts are executed and approved for the payment of the royalty interest, same shall not ~eIieve the lessees from responsibility for payment should the purchaser fail, neglect, or refuse to pay the royalty when it becomes due.

§ 183.34 Residue gas to be delivered to gas lessee. The residue or dry gas remaining after extracting the gasoline, not used for development purposes on the leases where it was produced or adjoining leases owned by the same lessee in Osage County, shall be delivered to the gas lessee as provided in .~ 183.~2, and all contracts for the sale of casing-head gas shall contain a provision to such effect. § 183.35 Casing-head gas sold to plants outside of Osage County. Where any casing-head gas Is sold to gasoline plants located outside of Osage County, tests shall be made under Gov~rnrnr~t ~ur.r,~:~lo:~ -to deterinitm the gasoline cot:tent, and when deemed advisable tests shall be made o~ all casinghead gas used in any such plant in order to determine:.whether the physical field test of ~as from Osage County s